Several U.S. House Democrats Petition Colleagues to Join Yes Side on Crypto Bill
Will the FIT21 Bill Propel U.S. Crypto Lead?
Several U.S. House Democrats are advocating for the passage of the crypto market-structure bill, FIT21, emphasizing bipartisan support and the need for U.S. regulation of cryptocurrency markets. The bill, which proposes a clear framework for digital assets, is set for a vote but faces uncertainty in the Senate.
Despite opposition from some quarters and the unclear stance of the Senate, proponents argue that the U.S. is lagging behind other countries in crypto regulation. The bill's passage in the House could influence broader legislative actions, though its future remains uncertain as the session nears its end.
What is the primary objective of the Financial Innovation and Technology for the 21st Century Act (FIT21) being considered by the U.S. House of Representatives?
The primary objective of the Financial Innovation and Technology for the 21st Century Act (FIT21) being considered by the U.S. House of Representatives is to establish a clear regulatory framework for digital assets in the United States. This bill aims to identify where and how each token and exchange might be regulated, establish consumer protections, provide disclosures, and address the use of crypto in illicit finance. The legislation is intended to responsibly usher in this new generation of internet technology and prevent the U.S. from falling behind other jurisdictions that have already instituted rules for the crypto industry.
What challenges does the FIT21 bill face in the Senate, despite its progress in the House?
The FIT21 bill, despite its progress and anticipated approval in the House, faces significant challenges in the Senate. One major hurdle is the lack of similar momentum in the Senate compared to the House, where the bill enjoys bipartisan support1. Discussions are ongoing between House aides and their Senate counterparts to find common ground, particularly with a similar Senate bill by Senators Cynthia Lummis and Kirsten Gillibrand1. However, the sentiment among some Senate members suggests a skepticism or reluctance to advance the bill in its current session.
Additionally, Rashan Colbert, a policy expert, expressed doubts about the Senate's readiness to take up the bill, emphasizing that starting with a committee process is essential but not currently in motion1. This procedural delay indicates that the Senate may not consider the bill thoroughly within the current Congress. Furthermore, a critical aspect that needs resolution is the funding for the Commodity Futures Trading Commission, which is expected to play a significant role in regulating the crypto markets under the bill but currently lacks adequate resources compared to its sister agency, the SEC. These challenges collectively dampen the prospects of the FIT21 bill in the Senate, despite its advancements in the House2.